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HomeMy WebLinkAbout01-26-98 Community & Ecocomic Development t Y 4 y VV 7/m Reif Community and Economic Development Committee .9O• di* G°OWW1& ( WW1 g(Me' 6k, eJOUt/r. Sr i!• The January 26, 1998 meeting of the Community and Economic Development Committee was called to order by its Chairperson, Council Member Roland Kelly at 5:05 p.m. in the Council informal meeting room. Persons in attendance included Council Members: Aranowski, Pfeifer, Kelly, Broden, Varner, Ujdak, Coleman, Hosinski, Sniadecki; Sue Hodgson, Bob Luann, Jon Hunt, Mike Beitzinger, Terry Bland, Laura Smith, Ed Levy, Mike Dobson, Dick Best, Kim Rybicki,Jack Hickey,Jackie Roelke,John Chrisman, and Kathleen Cekanski-Farrand. Council Member Kelly noted that the first item on the agenda was to review Bill No. 10-98 which would appropriate$2.4 million dollars of Section 108 loan funds. Beth Leonard, Director of Financial and Program Management for the Community and Economic Development Department, made the presentation. She noted that $150,000 would be for the rehabilitation of the Center for the Homeless, 450,000 would be for the construction of an addition to the LaSalle Park Recreation Center and the remaining$1.8 million would be for downtown redevelopment activities. She noted that the Center for the Homeless and the LaSalle Park improvements would be repaid from CDBG and that the downtown development would be repaid from TIF, EDIT or Civil City Funds. It was noted that the 108 loan monies have not been approved at this point by the Federal Government. Council Member Broden requested a background summary of 108 loans. Beth Leonard noted that it was established in 1974 by the Federal Government. Monies are requested each year with the city guaranteeing that they will repay such monies from Block Grant Funds. In response to a question raised by Council Member Varner, it was noted that repayment would take place over a twelve year period,with staggered payments being made. Council Member Ujdak questioned several items, beginning with the Hardee's property. He questioned whether there was a primary developer for this property. Mr. Hunt stated that they would have to go through the public bidding process with all potential developers. He has had discussions with potential bidders on this parcel. Council Member Ujdak questioned if he could identify publicly the proposed developers and was advised that he could not do that publicly,but would updated him privately. Council Member Ujdak why the Hardee block was proposed as opposed to the Monroe Michigan area where Fat Daddy's is located. Mr.Hunt noted that a Real Estate strategy team was established approximately one and one half years ago. They prioritized that class A office space is needed and that approximately 15 blocks should be densely developed. He also noted that densely developed class A • f Community and Economic Development Committee January 26, 1998 Page 2 space should be located near governmental buildings,high visibility areas,or near the city parking garages. Six potential cites were reviewed. He noted that he would be happy to provide a copy of this study. Council Member Hosinski questioned the criteria being used, since he believes that the Northeast corner of Colfax and Michigan would be perfect for high density development. Mr. Hunt noted that restrictions for the past 15 to 20 years have been in effect on that property. Council Member Ujdak questioned whether the Council could go forward since Barb's Grill is proposed to be designated as a Historic Site. Mr.Hunt stated that he would like the Common Council not to go forward with such a designation since he believes it would be another barrier. Mr.Hunt also noted that a unified parking plan is required to be a part of the four parcel development,beginning with the Hardee's property. Council Member Ujdak questioned what the final estimate on acquisition and demolition would be for the four parcels. Mr. Hunt noted that public hearings would take place on February 6 before the Commission, with all properties being added to the acquisition list. At least two appraisals must be done on each parcel. Council Member Varner questioned whether there was an urgency to this proposal. He voiced concern with regard to acquiring a property,raising the building and then leaving the property vacant and keeping it off the tax rolls. Mr.Hunt noted that the Studebaker Museum funds are included as part of the$1.8 million designated for downtown redevelopments. Mr. Hunt also noted that appraisal costs would be lower then acquisition costs because of the demolition and relocation amounts. He noted further that benefits of higher taxes and retaining businesses in the downtown area in job creation should all be considered,versus real estate taxes being generated by current property owners. Mr. Hunt further noted that the department would like to be pro-active to a degree and is protected by the public bidding process. Council Member Varner questioned whether tax abatement is anticipated for the four parcel area involving Hardee's. Mr. Hunt stated that he anticipates that tax abatement would be considered. He stated that an improvement of$60,000 square feet would be entitled to a 10 year real property tax abatement. Council Member Varner questioned how many potential businesses are relocations. It was noted that one business of approximately 20,000 square feet is not in the downtown with the other being in the downtown currently. Council Member Pfeifer questioned whether Hardee's is still functioning. Mr.Hunt noted that it is closed on Sunday, closes at 4:00 p.m. on Saturday, and closes at 6:00 p.m. on weekdays. Council Member Pfeifer questioned what the relocation costs would be if the property was acquired. Mr.Hunt noted that relocation costs are not as high when businesses are Community and Economic Development Committee January 26, 1998 Page 3 relocated as opposed to residential uses. Mr.Hunt also added that he believes the Transpo site would be a good location for the Hardee's operation. Council Member Ujdak voiced concern that he does not have enough information on the proposed$1.8 million and would like to delay this measure. Following discussion, Council Member Broden made a motion, seconded by citizen member Sue Hodgson that Bill No. 10-98 be recommended favorably to Council. The motion passed. Council Member Pfeifer questioned whether other Council Members share the concern that they do not have enough information on this bill. Council Member Ujdak again reiterated that he believes more information is necessary on the proposed$1.8 million for downtown renovation and development and is also concerned about the potential players. The Committee then reviewed Bill No. 98-8 which is a request for the property located at 1010 Prairie Avenue for a five year personal property tax abatement. Mr.Mike Beitzinger made the presentation. He noted that the petitioner is Huckins Tool and Die Company Inc. for a total project cost of$157,000. Mr.Beitzinger then reviewed the report dated January 12, 1998 concluding that the petitioner meets the criteria for the five year personal property tax abatement(copy attached). Mr. Kenneth Rybicld,President of the Company,was available for questions. Following discussion, citizen member Sue Hodgson, made a motion seconded by Council Member Pfeifer that Bill No. 98-8 be recommended favorably to Council. The motion passed. The Committee then reviewed Bill No. 98-9 which is a request for five year residential real property tax abatement for Affiance Associates. Mr. Mike Beitzinger reviewed the report dated January 19, 1998 which noted that the petitioner would develop 17 new single family residents in Lilac Trails subdivision. The project meets the regulations in this area(report attached). Laura Smith and Mr. Ed Levy then spoke on behalf of the proposed tax abatement. Mr. Levy noted that there is interest with property tax abatement as offered. Mr. Levy, in response to a question raised by Council Member Aranowski, assured the Council Members that notice of the tax abatement program would be given to all owners. Following discussion, Council Member Pfeifer made a motion seconded by Council Member Broden that Bill No. 98-9 be recommended favorably to Council. The motion passed. The Council Attorney noted that this bill and the next bill,namely Bill No. 98-10 included a new Section II which sets forth a criteria established by the Common Council in Ordinance No. 8845 which was passed on December 8, 1997. A • o Community and Economic Development Committee January 26, 1998 Page 4 The next item to be reviewed was Bill No. 98-10 which is a five year residential real property tax abatement request for Rojo Development Inc. Mr.Mike Beitzinger reviewed the report dated January 19, 1998 which noted that two new single family residents in Hermitage South Estates subdivision would be involved. The report concluded that the petitioner meets the criteria for such tax abatement(report attached). Mr. Jack Hickey and Jackie Roelke spoke in favor of a proposed abatement. Mr. Bill McCarthy also provided information that this is the first of several tax abatements that would be filed for the subdivision. A total of 50 lots are involved with 8 homes already constructed. Following discussion, citizen member Sue Hodgson made a motion seconded by Council Member Broden that Bill No. 98-10 be recommended favorably to Council. The motion passed. The Committee then reviewed Bill No. 98-11 which is a five year residential real property tax abatement request for BL Builders Inc. Mr.Mike Beitzinger reviewed the report dated January 19, 1998 (copy attached). He noted that the petitioner proposes to develop 37 new single family villas in San Piper Cove subdivision. The petitioner meets the criteria for such a requested abatement. Mr. Bob Luann and Mr. Chrisman made the presentation. Mr. Chrisman noted that the development is primarily aimed at senior citizens. He noted that in light of the various fees involved,the tax abatement would make the project more attractive for individuals on fixed incomes. A diagram of the proposed villas was then shown to the Committee. Mr. Luann noted that 10 villas have been built to date. He noted that the project includes a clubhouse and that each of the villas would have two full baths and a fireplace. Council Member Hosinski noted that the type of construction proposed for Sandpiper Cove should be used in Emerson Forest. Mr. Luann then provided a map (copy attached) of the Emerson Forest Tax abatement area and highlighted the areas where manufactured housing may be placed. Council Member Hosinski voiced strong reservations with regard to the utilization of manufactured housing. Mr. Luann noted that in light of the theft of materials of over$25,000 during the building process,that he believed he had no alternative but to go to manufactured housing. In response to a question raised by Council Member Varner, it was noted that the minimum square footage for homes in the Emerson Forest is 800 square feet plus a basement for an average cost of approximately $90,000. Council Member Ujdak also voiced concern over types of buildings being utilized in the Emerson Forest subdivision. Mr. Chrisman noted that furniture was taken from the model homes, in addition to substantial damage being done to the model homes was taken place during construction. Council Member Kelly, the Chairperson of the Committee, thanked Mr. Luann and Mr. Chrisman for an update on Emerson Forest,but directed attention back to Sandpiper Cove, since that is the subject manner of the Bill before the Council. Council President Coleman noted that there is a long history to the Sandpiper Cove development. He stated that he believes that the current developer has not compromised on the"look and feel of the development"and stated that he would support the proposed tax Community and Economic Development Committee January 26, 1998 Page 5 abatement. Mr. Luann added that he has provided approximately 25% of the cost of expenses for the clubhouse itself. Council Member Broden noted that he shares the concerns over the Emerson Forest subdivision,but would be supporting the Sandpiper Cove development this evening. Following further discussion, Council Member Broden made a motion, seconded by Council Member Pfeifer that Bill No. 98-11 be recommended favorably to Council. The motion passed. Council Member Kelly noted that further information on the Emerson Forest subdivision is forthcoming from BL builders Inc. Council Member Kelly then invited Mr. Mike Dobson and Mr. Dick Best to provide information on their proposal for the Studebaker Corridor. The Committee was informed that these individuals are interested in developing the Northwest corner of South Main and Sample. Pictures of the proposed development then were circulated among the Committee members. The development would include a restaurant of possibly Arby's or Lee's Famous Chicken with a 100 seating capacity, a convenience store, and a gasoline operation. It would be similar to the one located at Cleveland and Brick which they believe is compatible with commercial and industrial uses. The gentleman further noted that 50 employees would be involved with an annual payroll of between $300,000 and $350,000. Mr. Dobson noted that he operates 65 facilities and that his company has been in business for over 20 years. Mr. Best noted that he operates 15 facilities and also has been in business as a locally owned company for the past several years. In response to a question raised by Council Member Ujdak, it was noted that Mr. Dobson and Mr. Best have attempted for the past year and a half to work with various city officials, beginning with Mr. Tom Eddington and Ann Kolata. They also indicated that they had contact Jim Coldwell as well as Council Member Coleman. In December of 1997, they went before the redevelopment Commission and again stressed the need that they are local businessmen interested in private development for that area. In response to a question raised by Council Member Varner,it was noted that the proposed development would be approximately$1.25 million dollars with real estate taxes projected between$12,000 to$18,000 each year. Council Member Hosinski noted that he was at the December Redevelopment Commission meeting and believes that the proposed development would be a good one. Mr.Hunt stated that both gentleman are good businessmen,however the site is believed to have industrial/manufacturing as its highest and best use. He also noted that a potential development of 40,000 square feet may be forthcoming with an offer in the next three to four months. Mr. Hunt further noted that one of the goals for the Studebaker quarter was to help small businesses who are already located in that area. Community and Economic Development Committee January 26, 1998 Page 6 Mr. Hosinski suggested that perhaps other locations for the 40,000 square foot project could be considered. Council Member Hosinski further suggested that he believes that both types of uses were warranted and accommodation should take place. Mr. Hunt noted that the bottom line was that Schafer Gear,which currently has a 105 employees is interested in expanding. Council Member Varner stated that he does not see this situation as an either or and that both proposals should be pursued. Council Member Kelly suggested that this take place to see if possibilities for both proposals could result. He stated that it should be the purpose of the Commission and the Council to explore and look for compromise in such areas. Citizen Member Sue Hodgson noted that she would be interested in serving as a citizen member on other Council Committees, in addition to the Community and Economic Development Committee. There being no further business to come before the Committee,the meeting was adjourned at 6:30 p.m. Respectfully submitted, Roland Kelly, Chairperson Community and Economic Development Committee attachments